CVS Health CEO Lynch steps down as the drugstore chain struggles to right its path

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CVS Health CEO Lynch steps down as the drugstore chain struggles to right its path
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CVS Health CEO Karen Lynch has stepped down, with company shares sinking 19% this year and the health-care giant struggling on several fronts. CVS Health also warned of disappointing third-quarter earnings and said investors should not rely on guidance it laid out in August. Lynch will be replaced by veteran CVS Health executive David Joyner.

Earlier this year CVS Health cuts its 2024 profit forecast due to an increase in Medicare-related costs.the health-care giant struggling on several frontsCompany shares tumbled again Friday after CVS Health also warned of disappointing third-quarter earnings and said investors should not rely on guidance for that quarter that was provided in August.

With Lynch’s departure, there are now 45 female CEOs in the S&P 500, representing about 9% of all CEOs, according to the executive data firm Equilar. Barclays analyst Andrew Mok said Friday that the struggling insurance arm now has a leadership gap that the company will have to address in the near term.The company has been operating “well below its potential and has fallen short in its investment and actuarial approach in recent years,” Glenview Capital Management said earlier this month.

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